Judges side with Trump EPA over canceled Inflation Reduction Act grants to nonprofits

Source: techcrunch
Author: Tim De Chant
Published: 9/2/2025
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Read original articleAn appellate court has ruled in favor of the Environmental Protection Agency (EPA) under Administrator Lee Zeldin, supporting the agency’s decision to cancel Biden-era climate-related grants to nonprofits totaling billions of dollars. The grants, part of $20 billion authorized by Congress through the Inflation Reduction Act, were terminated by Zeldin citing a shift in EPA priorities and unproven concerns about fraud. While a lower district court had previously deemed the cancellations “arbitrary and capricious,” the appellate majority—comprised of Trump-appointed justices—upheld the EPA’s actions, emphasizing the government’s responsibility for proper oversight and management of the funds. Their decision referenced an undercover video by the conservative group Project Veritas as part of their rationale.
The frozen grants had been awarded to nonprofits such as Climate United and Power Forward, which had already committed hundreds of millions of dollars to solar and other clean energy projects. The freeze has disrupted these initiatives, leaving contractors unpaid and projects stalled. Despite Zeldin’s
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